CFTC: no swap market complacency amid Chinese pressure

Author: John Crabb | Published: 9 Aug 2018

The US derivatives market could lose its undisputed claim as
the primary commodity market in the world, following the
development of the Chinese markets as a viable regional price
benchmark in particular.

Speaking before the House Committee on Agriculture in
Washington DC, chair of Commodity Futures Trading Commission
(CFTC) Christopher Giancarlo suggested this could have
important competitive implications in both jurisdictions.

"We cannot be complacent about the historical primacy of our
derivatives markets. Our best response for US commodity
market participants and, indeed, for global markets, is to
ensure that derivatives markets in the United States are
unrivaled in their openness, orderliness, [and] liquidity," he
said.

China initially launched oil futures contracts on the
Shanghai International Energy Exchange in March 2018, the first
futures listed on its mainland to be targeted at overseas
investors. Others have followed suit, including iron ore, and
yet more have been said to be...